Global Legal Associate Attorney Bryce Van De Moere Featured in The Green Sheet
- December 7, 2022
A version of this article originally appeared on The Green Sheet. See the original post here.
Let’s get real about Merchant Reserves
Written By Bryce Van De Moere
Imagine you were called on to help a beleaguered group of merchants who needed help recovering monies from their reserve accounts. The party holding their money was a large, well-known ISO. Per the merchant processing agreement (MPS) between the merchants and the ISO, the date for returning those funds had long since passed, and despite numerous requests by the merchants, as well as enlisting the help of two prior attorneys, the merchants were nowhere close to recovering these reserve funds.
While the ISO would occasionally respond with the stated intention of releasing the monies due, the merchants would be lucky if even one of them received a disbursement. Even then, the check received would more often than not be returned for “insufficient funds.” This would result in yet another round of attempts to get the ISO to respond.
The legal fees and the merchants’ frustration would only increase. This process continued for more than 18 months. The third attorney they hired had his work cut out for him. The experience also made the attorney think about other merchants in the same situation who have simply given up on getting their money back.
You can read more of this article and Bryce’s comments here.
Even though embedded finance is becoming more popular lately, the idea itself isn't...Read More